Dear Sir/Madam, I am from Rohtak, Haryana. I have given certain sum of money in cash to my known person at interest rate of 2% per month. From last 6 months he is unable to pay interest and principal. Now for the security of money he is ready to give his house as pledge (girvi) for the period of 6 months. If within six months he is not able to return me the principle and interest the property will be transferred to me. But one more thing to note is that, he is not having the registry of that house. He is having POA with him. Please help me to move in this regard and safeguard the amount.
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1) do you have moneylender licence?
2) how can you give cash as loan without any documents being executed
3) there is no agreement to pay interest .
4) better contact a local lawyer and take all legal safe guards as per his advice .
5) ask the borrower to get property transferred in his name by sale deed . POA does not confer any title to property
In my opinion the answer given by my learned friend Mr. Ajay Sethi is correct, you may please contact lawyer in your area for doing the needful in accordance with law. For any clarification/help you may call me on phone through this site.
since you do not have money lender liscence going to court will not serve your purpose ,since sep 2011 all GPA are illegal
1. Did you enter into an agreement with the debtor whereby and whereunder money was loaned to him? Was any receipt issued by him to you?
2. If the answer to above 2 questions is yes then your rights as a creditor to institute legal action for recovery of money are protected subject to the clauses in the agreement. Your right to recover the interest will flow out of the agreement itself.
3. POA will not safeguard you against default in repayment of principal amount lent along with interest. Tell him to get the property transferred to his name according to law.
Sir, Thanks for all your advises I need to ask we are not in business of lending. It was one time transaction that was for purpose of buying that house, which now they are ready to pledge. Please mention the way out
1) contact a local lawyer . enter into agreement with borrower wherein he agrees to return money with interest
2) ask your friend to have property transferred in his name by sale deed . POA is not sufficient to protect your interests .
3) then enter into equitable Mortgage wherein title deeds are deposited with you
1. If you have not documented the transaction then you may ask the borrower to enter into an agreement with you now, albeit it is highly unlikely that he will do so as by doing so he will now create evidence against himself.
2. If he does make an agreement with you now then require him to get the property transferred to himself so that the same may be mortgaged by depositing title deed thereof.